1) In a typical chart of accounts, liabilities start with a _______ and expenses start with a _____
Possible answers are (a) 2,4 (b) 1,3 (c) 2,5 (d) 1,4
a) an asset is credited and a liability is debited
b) an asset is debited and an asset is credited.
c) an asset is debited and a liability is credited.
d) a liability is debited and a liability is credited
c) transaction analysis
d) preparation of trial balance
4) a payment on an account was posted as a debit to cash and a credit to accounts payable. Which of the following conditions will exist?
a) cash would be overstated
b) accounts payable would be understated
c) accounts receivable would be overstated
d) stockholders equity would be overstated.
5) which of the following accounts would be adjusted at the end of the accounting period?
b) accounts receivable
c) accounts payable
d) prepaid insurance
1. (c) 2,5
The chart classification is 1- Assets, 2- Liabilities, 3 - Equity, 4-Revenue and 5-Expenses
2. a) an asset is credited and a liabilty is debited
When the payment is ...
The solution explains some multiple choice questions in accounting